Urban One Q1 Net Revenues Fall 3.6%, Net Loss Widens

RADIO ONLINE | Thursday, May 28, 2020

Urban One

Urban One reported first quarter net revenues fell 3.6% to $94.9 million from $98.4 million from the same period in 2019. Broadcast and digital operating income was down 11.4 % to $37.6 million from $33.3 million. Adjusted EBITDA declined 13.9% to $32.3 million from $27.7 million, while it posted an operating loss of $27.3 million, down 45.7% from $14.8 million. The company reported a net loss of $23.2 million (51 cents per basic share) as compared to a net loss of $3.1 million (7 cents) in the year-ago period.

Urban One President/CEO Alfred C. Liggins III stated, "We got off to a great start to the year, with robust political advertising pushing same station revenues to +3.2% and +13.2% for January and February respectively. Then the impact of COVID-19 hit our radio markets, and March rapidly turned from positive to finish -14.1%. Despite this, we were able to post double digit Adjusted EBITDA growth for the quarter, and this is a testament to both our diversified mix of assets and the dedication and skill of our employees."

He added, "On a same station basis, radio advertising for April was down 58.3%, and Q2 is pacing -58.1%. Both local and national advertising is impacted by broadly similar percentages. Like many other businesses, we were forced to reduce fixed costs by means of furloughs, layoffs, significant salary cuts, and reduction of all discretionary expenditure."

Liggins noted that its cable tv and digital segments were not impacted to the same extent as radio, and due to a combination of strong ratings, deferred programming and marketing expenses plus other cost cuts, it expects the TV segment to deliver incremental EBITDA to help offset some of the declines in radio.